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INTRODUCTION

Milk -one of greatest gift that god has bestowed on human being yes, when
for the first time a child descends

from the womb of mother on to this earth what

else could quench the thirst / hunger of the baby the first diet, the multination, is
milk
So I concluded to undergo my summer training program in the dairy industry.
I went to Heritage dairy for the industrial training for a period of 45 days.
This industrial training makes the management students undergo partially which they
know theoretically .M.B.A student can be image in the problems with the theoretical
knowledge he has , but he can only solved it when he has practical experience or
knowledge.
So, ti is a compulsion for all MBA students to undergo months practical training in
their concernced subjects in any industry or company. After that we are required to
submit a project report on the practical experience we have acquired.
So I have undergone to the practical training in one of the leading diaries in Andhra
Pradesh i.e. Heritage dairy, which is situated on APIIC Growth Centre, BOBBILI.

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ANDHRA UNIVERSITY

NEED OF THE STUDY


To meet the cutthroat competition existing in the modern world this
emphasizes on purposeful learning experiences under natural condition.
To give lot of practical exposure and the real working environment.
To recognize the practical implementation of everything learned.

To get a vivid knowledge of management theories and practices.

To satisfy customer / consumer all the ingredients marketing mix viz.,


Price, place & promotion must be mixed properly

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OBJECTIVES OF THE STUDY

This study was contact I with an objective of getting an insight of

present

market share achieved and steps taken to maintain it in vizianagaram and in adjacent
areas. These study enterprises on the marketing strategy developed in order to meet
the developing in the market. Another important objective of this study conducted is
to know and understand the penetration of Heritage co operative dairy in
vizianagaram and the suburbs as compared to others.

The main objective of the study can be more clearly enumerated as:
1. To know the market share of Heritage.
2. To find out the quality of the heritage products in the market.
3. To know the interaction with customers.
4. To find out whether supply meets demand.
5. To know the promotional activities of heritage products.

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ANDHRA UNIVERSITY

METHODOLOGY
A good research study is necessary as it minimizes the dangers of haphazard
collection of information. Research design is a framework or plan for the study guide,
the collection and analysis of the data. Considering the objectices of the study
different types of research , plans have been done. The study tends to the conclusive
in nature . an fine effort reflecting on the conclusive result . basing on the conclusive
result helped a lot in taking a rational decision
SOURCES OF DATA:
Towards the accomplishment of the mentioned objective, information would
be obtained from primary as well as secondary data sources;
After the objectives has been stated clearly, the next task was to collect
relevant data regarding the research study . the data the Indian and international dairy
scenario were collected from the internet. Primary data will be generated by meeting
different executives in the company. Although, there was some data from newspaper
and magazines but the major portion was given by the company i.e. the officials of
the respective departments. Most of the data and figures were collected from the
records of the company, in fact the above collected data was not enough so there was
need or primary source of data so, the primary data involves data collected from few
retailers and from few consumers.
Secondary data is concerned with the Information Pertaining to
Interactive Marketing organized over a period which will be obtained by referring to
record of the statistical departments. In-house magazines, journals, newspapers and
other published materials will be used for reference and collection of necessary data.

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DATA COLLECTION INSTRUMENTS:


The basic instrument used in collecting the data in this survey is the
questionnaire. Apart from that we had also gone through the records of the company.
The data collected from the above includes.
1. Data regarding Heritage dairy
2. Data regarding the highest selling product
3. Data regarding total sales and market shares of Heritage dairy
4. Data regarding effect of promotional activities undertaken by Heritage dairy
5. Data regarding the consumers perceptions about quality of milk availability of the
products and price of the products.
6. Data about Heritage dairy and competitors share in the market i.e. vizianagaram
and suburbs.
The questions was prepared by us under the guidelines of the sr. manager
(marketing), Heritage dairy, although most of the questionnaires were useful but some
of the questions were not answered properly by the responds. Some questions like
high recall rate and questions regarding promotional activity were not answered
properly, perhaps the consumers had never thought with that concern and interest.

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ANDHRA UNIVERSITY

LIMITATIONS OF THE STUDY

Inspire of honest and sincere efforts by the researchers there are bound to be certain
discrepancies and inconsistencies. Again there were several limitations both statistical
and non-statistical within which the research has been carried out.
Some of the limitations felt and faced are:
1. The whole research study was carried out in some part of vizianagaram only.
Therefore, the result may not same in zonal basis.
2. It is very difficult to generalize the main findings, as the sample size is very small.
3. Some of the findings have been taken in this research are based on opinion,
attitudes feelings and perceptions of few respondents.
4. The major limitation in this research study is lack of co-operative from few
department heads due to probably lack of time.
5. Most of the heads of departments were reluctant to receive at first sight.the
researchers had to visit number of times to obtain required data.
6. Another greatest limitation of the research study was lack of time.

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ANDHRA UNIVERSITY

MILK INDUSTRY PROFILE

INDIAN SCENARIO OF DAIRY INDUSTRY:


The main stay of Indian farmers has been agriculture and allied occupations, farm ,
animals, especially catties have been an integral part of rural India for thousands of
years. During the year 1920 military farms were established to supply adequate raw
milk to the stations. these were well maintained and improved hence forth.

In 1940 the first farmers integrated dairy co operative was established in kaira
district anand , which later came to be kmown as AMUL . Amul and greater
Mumbai milk scheme set together a faster pace of dairy , developed with emphasis on
developed techniques of precessing and marketing under Indian consitions. In India
the state with highest production is milk is Gujarat.

INSTITUTIONAL SUPPORT TO CO-OPERATIVE DAIRYING INDIAN


DAIRY CORPORATION:
The Indian dairy corporation was set up under company act on 13 th February 1970 .it
is a government of India under taking .the immediate need to set up IDC was to
handle the properly known as operation flood .
India has emerged as the worlds top dairy nation with milk production crossing
75 million tons in 1997 -98. India is placed second in milk production when
compared to USA.

The Indian dairy industry production is estimated to have risen from the low of 20
million tons to 75 million tons .though our country accounts 25% of the total
agricultural animals, yet the production of milk is only 65% of the world production.

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India is the second largest populated country and consumption of milk is also high .in
order to meet the requirements of the people the government started the program
operation flood . and developed subsequently .in every five year plan emphasis is
given on agriculture ,which also indicates dairying and farming .
It is estimated that per capita consumption of every Indian is 118 grams .but
the minimum requirement of good healthy is 210 grams per day .it is also estimated
that consumption of milk for this year would be 64.40 million tons this year
.therefore, it is necessary to develop dairy farming in India .

HERITAGE DAIRY:
The Heritage Group, founded in 1992 by Sri Nara Chandra Babu
Naidu, is one of the fastest growing Private Sector Enterprises in India, with fourbusiness divisions viz., Dairy, Retail, Agri, and Bakery under its flagship Company
Heritage Foods (India) Limited (HFIL), one subsidiary - SKIL RAIGAM POWER
Limited. The annual turnover of Heritage Foods crossed Rs.900 crores in 2010-11
and is aiming for Rs.1100 crores during2011-12.

Presently Heritages milk products have market presence in Andhra


Pradesh, Karnataka, Kerala, Tamil Nadu, Maharastra and Orissa and its retail stores
across Bangalore, Chennai and Hyderabad. Integrated agri operations are in Chittoor
and Medak Districts and these are backbone to retail operations. The state of art
Bakery division at Uppal, Hyderabad, AndhraPradesh.

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VISAKHA DAIRY:
Sri Vijaya Visakha Milk Producers Company Limited., [Visakha Dairy],
Visakhapatnam in Andhra Pradesh, is having their procurement operations in Costal
Andhra districts, viz, Srikakulam, Vizianagaram and Visakhapatnam & in East
Godavari and Sales operations across India.
The Government after considering dairying as one of the instruments for
bringing socio economic development in the rural areas, To overcome this object, the
Dairy was started in the year 1973 with handling capacity of 10000 liters per day in
Visakhapatnam under cooperative act with milk procurement operations in 50
villages. Now the Dairy is procuring the milk from 2744 villages in Costal Andhra
areas by serving 2,07,925 milk producers.
The Dairy was converted to Mutually Aided Cooperative Act-1995 in the year
1999 as Srivijayavisakha District Milk Producers Mutually Aided Cooperative
Union' and the Dairy was converted to Company Act-1956 with effect from
06.01.2006 as SriVijayaVisakha Milk Producers Company Limited.

The

Procurement and Production graph growth is increasing year after year with more
participation of the rural farmers.
TIRUMALA MILK PRODUCTS (P) Ltd:
Tirumala Milk Products Private Limited is a professionally managed
company engaged in the manufacture of a wide range of Dairy Products which
include Milk in Sachets, Sweets, Flavored Milk, Curd in Cups and Sachets, Milk
Powder, Butter, Ghee and Butter Oil both in bulk as well as in consumer packs.
Established in 1998, Tirumala Milk Products (P) Ltd. is one of the fastest
growing Private Sector Enterprises in India with a team of dedicated professionals.
The company has one of the most modern and versatile plants in the Indian Dairy
Industry with state-of-the-art technology. Tirumala Milk Products (P) Ltd. products
meet stringent quality control tests and cater to the premium segment of the market
for Dairy Products. Tirumala Milk Products (P) Ltd. is presently implementing an
expansion programme and proposes to launch new products in the near future.
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Presently our market presence is in Andhra Pradesh, Karnataka and Tamil


Nadu. We handle 7 Lakh liters of milk per day in our packing stations and dairy plant,
which is the single largest plant in the state of Andhra Pradesh. Our Registered
Office is located at Narasarao Pet, Gutur Dist and Corporate Office is located at
Ameerpet, Hyderabad.

VIJAY DAIRY:
In the year of 1974, Mr. Jagjivandas Patel, founder of Vijay Dairy and
Sweets, has started selling milk in a small pot in small town of Surat. After that his
four sons have developed the business from one pot to three big outlets in Surat city.
In 1981, the group has opened its first such outlet on busy road of Adajan
Patiya of Surat City. Local people appreciated quality of all products sold by the
outlet

and

asked

for

establishment

of

more

outlets

in

other

areas.

After that word-of-mouth was the only advertisement tool for gaining
popularity in across the city. In the year 1990, the group opened its second outlet for
taste lover citizens of Surat at Palanpur Patiya area of the city. Revenue from this
outlet

has

soon

crossed

revenue

earned

by

the

first

outlet.

In the year 1997, the group stated its third selling point at Vishal
Nagar,New Sardar Bridge. With time, the company has changed its strategy, and
started innovations in preparing sweets and dairy products. Today at Vijay Dairy and
Sweets,

you

will

find

traditional

sweets

of

all

regions

of

India.

NRI customer base is also increasing day-by-day. For them we serve our milk
and milk products in the best packaging material so that the product maintains its
original taste and quality for longer period. The promoters are used to travel across
India and bring product of that region under the roof of Vijay Dairy and Sweets

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MOTHER DAIRY:
Mother Dairy markets & sells dairy products under the Mother Dairy brand,
Dhara range of edible oils and the Safal range of fresh fruits & vegetables, frozen
vegetables and fruit juices at a national level through its sales and distribution
networks for marketing food items.

Mother Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS


certified organization. Moreover, its Quality Assurance Laboratory is certified by
National Accreditation Board for Testing and Calibration Laboratory (NABL)Department of Science and Technology, Government of India.

Mother Dairy markets approximately 2.8 million liters of milk daily in the
markets of Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a
market share of 66% in the branded sector in Delhi where it sells 2.3 million liters of
milk daily and undertakes its marketing operations through around 14,000 retail
outlets and 845 exclusive outlets of Mother Dairy.

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DAIRY INDUSTRY AT A GLANCE


INERNATIONAL SCENERIO OF DAIRY INDUSTRY
THE LIQUID MARKET:
Average of 14 billion of milk were produced every year in uk, 73 billion tons in USA
and Indias production is around 75 million tons, half of the total production of the
milk is used for manufacturing other products. In u.k the liquid milk sales has been a
decline since the last decade.
Since 1980 more than 90% of milk was purchased form the milkman, by 1980 this
declined to 89% , in 1985 to 81.9% , in 1990 to 68.3% , and by 1995 doorstep
delivery accounted for 44.5% of all milk purchased . sales in supermarkets and small
shops increased in relation to the decline in doorstep share.
CONTAINERS:
About 86% of all the household milk sold in England, Scotland and Wales is
sold glass bottles, while plastic containers claiming 50% of the market and cartons
occupies the remaining 19% . Virtually, all milk sold in glass bottles is sold in
doorstep delivery while disposable packaging accounts for almost all shop sales
Major types of milks available internationally are:
whole milk : energy value 38 calories and fat content is 3.5% .
semi skimmed milk: energy value is194 calories and tat content 0.1%
homogenized milk: all the fat are spread uniformaly , no cream layer is found.

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COMPANY PROFILE
HERITAGE AT A GLANCE:
The Heritage Group, founded in 1992 by Sri Nara Chandra Babu
Naidu, is one of the fastest growing Private Sector Enterprises in India, with threebusiness divisions viz., Dairy, Retail and Agri under its flagship Company Heritage
Foods (India) Limited (HFIL), one infrastructure subsidiary - Heritage Infra
Developers Limited and other associate Companies viz., Heritage Finlease Limited,
Heritage International Limited and Heritage Agro Merine Private Limited. The annual
turnover of Heritage Foods crossed Rs.347 crores in 2006-07 and is aiming for
Rs.700 crores during 2007-08.
Presently Heritages milk products have market presence in Andhra Pradesh,
Karnataka, Kerala, Tamil Nadu and Maharashtra and its retail stores across
Bangalore, Chennai and Hyderabad. Integrated agri operations are in Chittoor and
Medak Districts and these are backbone to retail operations.
In the year 1994, HFIL went to Public Issue to raise resources, which
was oversubscribed 54 times and its shares are listed under B1 Category on BSE
(Stock Code: 519552) and NSE (Stock Code: HERITGFOOD)

ABOUT THE FOUNDER:


Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic,
Progressive and Visionary Leaders of the 21st Century. With an objective of bringing
prosperity in to the rural families through co-operative efforts, he along with his
relatives, friends and associates promoted Heritage Foods in the year 1992 taking
opportunity from the Industrial Policy, 1991 of the Government of India and he has
been successful in his endeavor.

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At present, Heritage has market presence in all the states of South India. More
than three thousand villages and five lakh farmers are being benefited in these states.
On the other side, Heritage is serving more than 6 lakh customers needs, employing
more than 700 employees and generating indirectly employment opportunity to more
than 5000 people. Beginning with a humble annual turnover of just Rs.4.38 crores in
1993-94, the sales turnover has reached close to Rs.300 crores during the financial
year 2005-2006.
Sri Naidu held various coveted and honorable positions including
Chief Minister of Andhra Pradesh, Minister for Finance & Revenue, Minister for
Archives & Cinematography, Member of the A.P. Legislative Assembly, Director of
A.P. Small Industries Development Corporation, and Chairman of Karshaka Parishad.
Sri Naidu has won numerous awards including " Member of the World
Economic Forum's Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time
Asia ), " Business Person of the Year " (Economic Times), and " IT Indian of the
Millennium " (India Today).
Sri Naidu was chosen as one of 50 leaders at the forefront of change in
the year 2000 by the Business Week magazine for being an unflinching proponent of
technology and for his drive to transform the State of Andhra Pradesh.

FORWARD LOOKING STATEMENTS:


We have grown, and intended to grow, focusing on harnessing our
willingness to experiment and innovate our ability to transform our drive towards
excellence in quality, our people first attitude and our strategic direction.
MISSION:
Bringing prosperity into rural families of India through co-operative
efforts and providing customers with hygienic, affordable and convenient supply of "
Fresh and Healthy " food products.
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VISION:
To be a progressive billion dollar organization with a pan India foot
print by 2012.To achieve this by delighting customers with "Fresh and Healthy" food
products, those are a benchmark for quality in the industry.
We are committed to enhanced prosperity and the empowerment of the
farming community through our unique "Relationship Farming" Model.
To be a preferred employer by nurturing entrepreneurship, managing
career aspirations and providing innovative avenues for enhanced employee
prosperity.
HERITAGE SLOGAN:
When you are healthy, we are healthy
When you are happy, we are happy
We live for your "HEALTH & HAPPINESS"

QUALITY POLICY OF HFIL:


We are committed to achieve customer satisfaction through hygienically
processed and packed Milk and Milk Products. We strive to continually improve the
quality of our products and services through up gradation of technologies and
systems.
Heritage's soul has always been imbibed with an unwritten perpetual
commitment to itself, to always produce and provide quality products with
continuous efforts to improve the process and environment.

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Adhering to its moral commitment and its continuous drive to achieve


excellence in quality of Milk, Milk products & Systems, Heritage has always been
laying emphasis on not only reviewing & re-defining quality standards, but also in
implementing them successfully. All activities of Processing, Quality control,
Purchase, Stores, Marketing and Training have been documented with detailed
quality plans in each of the departments.
Today Heritage feels that the ISO certificate is not only an epitome of
achieved targets, but also a scale to identify & reckon, what is yet to be achieved on a
continuous basis. Though, it is a beginning, Heritage has initiated the process of
standardizing and adopting similar quality systems at most of its other plants.
COMMITMENTS:
MILK PRODUCERS:
Change in life styles of rural families in terms of:
Regular high income through co-operative efforts.
Women participation in income generation.
Saved from price exploitation by un-organized sector.
Remunerative prices for milk.
Increase of milk productivity through input and extension activities
Shift from risky agriculture to dairy farming
Heritage
Financial support for purchase of cattle; insuring cattle
Establishment of Cattle Health Care Centers
Supplying high quality Cattle feed
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Organizing "Rythu Sadasu" and Video programmes for educating the farmers
in dairy farming

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CUSTOMERS:
Timely Supply of Quality & Healthy Products
Supply high quality milk and milk products at affordable prices
Focused on Nutritional Foods
More than 4 lakh happy customers
High customer satisfaction
24 hours help lines ( <10 complaints a day)

EMPLOYEES:
Enhancing the Technical and Managerial skills of Employees through
continuous training and development
Best appraisal systems to motivate employees
Incentive, bonus and reward systems to encourage employees
Heritage forges ahead with a motto "add value to everything you do"

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SHAREHOLDERS:
RETURNS:
Consistent Dividend Payment since Public Issue (January 1995)
SERVICE:
Highest impotence to investor service; no notice from any regulatory authority
since 2001 in respect of investor service
Very transparent disclosures

SUPPLIERS:
DOEHLAR: Technical collaboration in Milk drinks, yogurts drinks and fruit
flavored drinks Alfa-Laval: supplier of high-end machinery and technical support
Focusing on Tetra pack association for products package.
SOCIETY:

Potential Employment Generation


more than 3500 employees are working with heritage
more than 9500 procurement agents got self employment in rural areas
more than 5000 sales agents associated with the company

Employment for the youth by providing financial and animal husbandry

support for establishing MINI DAIRIES

Producing highly health conscious products for the society

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QUALITIES OF MANAGEMENT PRINCIPLES:


1.

Customer focus to understand and meet the changing needs and expectations

of customers.
2.

People involvement to promote team work and tap the potential of people.

3.

Leadership to set constancy of purpose and promote quality culture trough out

the organization.
4.

Process approach to assess the efficiency and effectiveness of each process.

5.

Systems approach to understand the sequence and interaction of process.

6.

Factual approach to decision making to ensure its accuracy.

7.

Continual improvement processes for improved business results.

8.

Development of suppliers to get right product and services in right time at

right place.

PRODUCT/MARKET WISE PERFORMANCE:


The total turnover is Rs 341 Crores during the financial year 2006-07
against the turnover of 292.02 Crores. Today Heritage distributes quality milk & milk
products in the states of A.P, Karnataka, Kerala & Tamil nadu.
During the year 2006-07 liquid milk sales was Rs.28329.79 lakhs
against Rs.24525.23 lakhs in the previous year. The sales of miik products including
bulk sales of cream, ghee and butter were recorded Rs 5781.59 lakhs against Rs
4677.21 lakhs.
MILK SALES:
23% growth was recorded in AP 2.38 lakhs litres per day(LLPD) in 2006-07
against 1.93 LLPD in 2005-06. 13% growth was recorded in Tamilnadu-1.53 LLPD
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in 2006-07 against 1.35 LLPD in 2005-06. Over all growth of 6% was recorded- 5.49
LLPD in 2006-07 against 5.16 LLPD. Flavoured milk sales recorded a growth rate of
77% over 2005-06. Butter milk sales have gone up by 45% over 2005-06.
OUTLOOK:
Considering the growth potential in the liquid milk market, the
company has drawn plans to increase its market share in the existing markets and to
enter into new markets there by doubling revenues in dairy business in the next 3
years. To achieve this object, company is undertaking major expansion in dairy
business by inverting over Rs20 crores during 2006-07 and over Rs10 crores during
the current year to strengthen the milk procurement.

BRANCHES OF HFIL:
HFIL has 3 wings. They are
1.

Dairy

2.

Retail

3.

Agribusiness

1. DAIRY:
It is the major wing among all. The dairy products manufactured by HFIL are
Milk, curd, butter, ghee, flavoured milk, paneer, doodhpeda, ice cream.

2. RETAIL:
In the retail sector HFIL has outlets namely Fresh@. In those stores the
products sold are vegetables, milk& milk products, grocery, pulses, fruits etc.
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In Hyderabad 19 retail shops are there. In Bangalore& Chennai, 3&4


respectively are there. Totally there are 26 retail shops are there.
Fresh@ is a unique chain of retail stores, designed to meet the needs of
the modern Indian consumer. The store rediscovers the taste of nature every day
making grocery shopping a never before experience.
The unique& distinctive feature of Fresh@ is that it offers the widest
range of fresh fruits and vegetables which are directly hand picked from the farms.
Freshness lies in their merchandise and the customers are always welcomed with
fresh fruits and vegetables no matter what what time they walk in.

3. AGRI BUSINESS:
In this business HFIL employees will go to farmers and have a deal
with them. Those farmers will sell their goods like vegetables, pulses to HFIL only.
And HFIL will transport the goods to retail outlets.
The agricultural professors will examine which area is suitable to
import vegetables from and also examine the vegetables, pulses and fruits in the lab.
And finally they report to the Head-Agribusiness. Representatives as per the
instructions given by the agri professors will approach the farmers directly and make
a deal with them. It is the process of registering the farmers.

BOARDOFDIRECTORS:
Sri D. Seetharamiah, Chairman, aged 83 years, a commerce graduate from the
Andhra University and a member of the Institute of Chartered Accountants of India, is
the senior partner of Brahmayya & Co., a leading Chartered Accountants firm. He has
been in practice for the last four decades. He had occupied several coveted positions,
which include, Membership of the Southern Regional Board of Reserve Bank of India,
Federation of Andhra Pradesh Chamber of Commerce and Industry, Chairmanship of
Tirumala Tirupati Devasthanams Trust Board etc. He is also on Board, of severaI
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Companies.

Sri K. Kannan, Additional Director, aged 70 years, is an F.C.A and I.C.W.A


and Honorary Member of the Indian Institute of Bankers. He started his career as a
direct recruited officer in 1965 in Bank of Baroda and worked in various capacities in
the same Bank upto 1992. Thereafter he was appointed as its Chairman and Managing
Director and served between 1995 to 1999. He had the occasion to render its services
overseas as Vice-President between 1982-84 at New York and General Manager of
U.K Operations of Bank of Baroda. Apart from this he was also the Chairman of IBU
international Finance Limited, honking, Chairman BOB Cards Ltd. He had held the
position as Director in several companies like discount and finance house of India,
Visa International Pacific, Agricultural Finance Corporation, New India fire and
General Assurance Co.Ltd, Andhra Pradesh State Financial Corporation. Apart from
this he is also on the Board of directors of several Limited Companies. He had the core
banking experience for over 30 years and handled successfully several cases of
reviving, rehabilitating and reconstruction of the sick industries.

Dr. A. Appa Rao, Director, aged 83 years, a B.Sc.(Agri), Ph.D. in

Agriculture

(Madras University), completed his post doctoral work at Kansas State University as
TCM-USA Scholar, retired as the Vice Chancellor of the Andhra Pradesh Agricultural
University. He is an author of around 40 papers published in the fields of Plant
Pathology and Agricultural Research & Education. Being associated with the IDRC
financed Agricultural Research Management (Asia) Project, was instrumental in
implementing SEARCA, Philippines for over 5 years. He is also a Director in several
Companies and a member of several committees including the ICAR.

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Dr. V. Nagaraja Naidu, Director, aged 62 years, an M. Com, M. Litt and a PhD.
(Financial Management), starting from Administrative Staff College of India,
Hyderabad in 1972 held various positions in reputed Universities, Viz., Professor,
Dean Director etc., and taught in the fields of Finance and Business Economics at Post
graduate and Doctorate levels for about 25 years. He had been the Registrar
(Administrative head) of the Dr B R Ambedkar Open University for about 10 years.
He has been associated with the Company since inception and has been able to utilize
his intimate understanding of the rural socio economic scenario to strengthen the milk
procurement systems and strategies of Heritage, which contributed to the current status
of Heritage as a leading player in South India.

Dr. N. R Sivaswamy, Director, aged 73 years, a LL.B, M.A. (Economic), M.A.


(Public Administration), Ph.D. in Economics (University of Wisconsin, U.S.A) and a
Fellowship holder of the Ford Foundation, U.S.A, is a leading Advocate and Tax
consultant and author of a book titled "Employment potential of the Indian Industrial
Sector" and several other articles and Journals. He retired as the Chairman of the
Central Board of Direct Taxe

Sri N. P Ramakrishna, Director, aged 63 years, who has substantial experience in the
transport business, has a thorough understanding of the systems of milk procurement
and transportation and has enabled Heritage to strengthen its main milk procurement
base at Chittoor, Bangalore and nearby areas. He is also the Managing Director of
Hotel Ramakrishna Private Limited situated at Chittoor and was Chairman of the
Chittoor Co-operative Sugar Factory.

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Smt N. Bhuvaneswari, Vice-Chairman & Managing Director, aged 47 years, a B.A, is


a dynamic leader who has extensive experience in business and has been successfully
steering Heritage towards growth and better prospects. She is also a Director in several
other Companies.

Sri Lokesh Nara, Executive Director, aged 27 years, completed his Masters Degree
in Business Administration from Stanford University and graduated with a Bachelor of
Science degree in Management Information Systems from Carnegie Mellon
University. Before joining the Board of Heritage Foods, he was associated with the
Company as a Vice-President of the Retail division. Before joining Heritage Foods, he
worked with the World Bank as a Junior Professional Associate where he completed
various projects including an e-Governance Capacity Building program for the
government of Ethiopia, and e- Governance Capacity Building program for the
governments of South Sudan and Kenya. He has over three and half years of
experience in the areas of strategic business and information technology.

PRODUCTS:

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Milk (Poly Pack)

UHT Milk

Curd

Butter Milk

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Flavoured Milk

Ghee

Doodh Peda

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27

Paneer

Ice Cream

Cooking Butter

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28

Lassi

Fresh Cream

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The concept of marketing mix is an important development in the field of marketing.


The determination of marketing mix is the basis of sound marketing programme.
During the marketing programme process, the marketing strategy is adopted by a firm
are spell out. Marketing strategy drawn up by the management of firm explain as to
how the firm is achieve its objectives. Marketing strategy is the marketing logic
which the business firm expected to achieve its marketing objectives. It consisting of
marketing decisions on the businesses marketing expenditures, marketing mix and
marketing allocations in relation to expected environmental and competitive
conditions. Thus marketing mix is an important element of marketing strategy.
Milk & milk products play a vital role in countries agriculture
economy. Milk has 1st among all agriculture produce in India dairying provide source
of income to million of farmers. It create lively hood to about 75 % population of the
country. Majority of them are low income groups of rural areas.
The dairy unit all over India under five year plane were taken up with
dual objective of increasing the national level of milk consumption and ensuring
better return to the primary milk producers.
Moderate world is competitive and consumers occupy a pivotal
position. All baseness activities are directed towards him in such a manner that
consumer satisfaction can be achieved in the modern world products is produced and
services are rendered as per the taste, requirement and needs of the target consumers.

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MARKETING MIX WITH SPECIAL REFERENCE TO

HERITAGE DAIRY

Every organization, which ishaving production of goods and sales in the markets,
should have a well-prepared mix strategy. The marketing mix of the organization
should be planned in such a way that it should suit the competitors marketing
strategies, economic conditions of the people etc.
Heritage dairy is completely a milk-oriented dairy. It deals with milk and milk
products. Milk is very delicate food, which can get spoiled very easily with a little
carelessness. Hence much care should be taken by the organization starting from
procurement to distribution channel is though not a larger one yet for this particular
organization the present channel is sufficient.
Heritage dairy is having many products. It is having a wide product mix ad product
line. Earlier Heritage dairy was declined by a very little extent. The competition in the
market lead to increase in the promotional activities of the organization. Though the
competitors came into existence yet there exists brand loyalty among manyconsumers.

PRODUCT:

Heritage Dairy is an organization, which is completely involved in providing services


to the customers and the farmers from whom milk, is being procured.
Though it is a profit oriented firm yet it is charging only reasonable amount from the
customers for their products being sold. Heritage dairy is improving and increasing
many product varieties day by day. They are conduction researches and producing
products, which are useful to public at large. The basic definition of the product is
anything that can be offered to a market to satisfy a want or need.

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FIVE-PRODUCT LEVELS OF HERITAGE DAIRY ARE:

CORE BENEFIT:
The fundamental benefit, which the customer is really buying, is the energy. Milk has
good content of vitamins, proteins and fats.

BASIC PRODUCT:
It is the product, which offers services or satisfies the needs of the consumers in case
of Heritage dairy the basic products are milk, buttermilk, flavored milk, ghee,
pannier, sweets etc.

EXPECTED PRODUCT:
A set of attributes, which the consumers normally agree and expect when they
purchase the product. In case of Heritage dairy naturally the expected attributes are
good quality and the hygienists. The consumers expect certain amount of attributes,
which the organization has promised in its product and naturally the customers of
Heritage dairy too expects the same.

AUGMENTED

PRODUCT:

The

products,

which

meet

the

customers

expectations of the product beyond their desires, are augmented product. Heritage
dairy is always trying to go beyond the expectations of the customers. They are
improving their products according to the tastes and preferences of the customers.

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POTENTIAL PRODUCT:
These products encompass all the augmentations and transformations that the product
might ultimately undergo in the future. Heritage dairy is producing tetra packs.

PRODUCT PROFILE OF THE ORGANISATION


The products of Heritage dairy are numerous. They are producing all possible
products, which can be made out of milk. The basic products of Heritage dairy are
milk ghee, flavored milk, butter milk, pannier etc.
MILK:
WHOLE MILK/ FULL CREAM MILK:
1.

Fat content of the milk is 60%

2.

Solids not fat percentage of milk is 9%

3.

Bacteria free and hygienic.

4.

Total sales per day is 23000 liters


Toned milk:
Fat content of the milk is 3%.
Solids not fat percentage of milk is 8.5%.
Total sales per day are 13000 liters.
Double toned milk:
Fat content of the milk is 1.5%.
Solids not fat percentage of milk is 9%.
total sales per day is 25000 litres
For naval only.
Tetra packs milk (U.H.T. processed milk):
fat content of the milk is 1.5%,3%,4.5%
solids not fat percentage of milk is 9%,8.5%
Bacteria free and hygienic (it can be stored up to 2 months).
Ready for consumption.

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GHEE:
Complete fat content (99.6%).
Granular and white in color.

DOODTH PEDA:
The mouth lickering, the delicious doodth peda. This is one of the best products
produced by Heritage dairy, which is an pure milk extract with a very good state and
quality.Milk cake, mysore pak, badam burfi. Even sweets are prepared with milk,
pure ghee and milk powder. All these products are good sources of energy.

PLACE/DISTRIBUTION OF CHANNEL:
Distribution channel plays a vital role in the successful marketing of
most products, especially consumer products. A marketing channel performs work of
moving goods and services from producer to consumer. Depending upon the product
type the distribution channel is decided. The length of the channel depends upon the
number of intermediaries.
Distribution is the process, which starts when the product is ready for the
consumption. This process may include middleman also. Heritage dairy distributors
milk packets to the commission agents, direct to the consumers through vans. These
vans will be sent in time in time to the required places.
Customers will be satisfied only when they get product without pain. In order to
maintain customer satisfaction the products are being distributed on time by arranging
effective transport system.

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Channel 1:
In this channel the milk is being distributed to the consumers through the
commission agents. These commission agents are playing vital role in the sales of
Heritage dairy milk.
This channel is the most important channel maximum of sales is being achieved
through this channel. This is the easiest channel through which consumers can
acquire the milk. These commission agents in turn appoint delivery boys for supply to
customers. This is the easiest channel where goods will be delivered directly to the
consumer at the doorsteps through the commission agents. Milk will be supplied to
agents through dairy vans in morning times. This facility makes commission agents
comfortable and motivated. Even cash is collected at the sale points itself.
PLANT
COMMISSION AGENTS
DELIVERY BOYS
CONSUMER

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Channel II:

This channel includes retailers where the milk products like


buttermilk, doodh peda, flavoured milk, ghee, etc, which are being sold by Heritage
dairy.
PLANT

RETAILER

CUSTOMER
A retailer is a person who sells goods to the ultimate customers. In
case of Heritage dairy at some of the areas from where every customer can busy dairy
products. It has given retailer shop o the outsiders. In these retail outlets customers
can get milk products other than milk like ghee, flavoured milk, doodh peda, etc

Channel III:
In fact this cannot be considered as a channel because there are no
intermediaries between the organization and the customer. Here the customers are in
direct contact with the dairy. They give orders for the special occasions to dairy, these
orders will be met on time by the Heritage dairy personnel. The customer can book
orders directly to the organization or they can even book through their booth agents.
The hotels, restaurants and other sweet merchants use even this
channel. There will be direct contact between the customer and the Heritage dairy.
The transactions will be only through marketing department.

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This channel can also be considered as the zero level channels where
the manufacturer is directly selling to the consumer. This is also a kin of direct
marketing channel. To the products like milk etc. this type of channel is very useful
where the consumer can directly be in contact with the producers.

PLANT

CUSTOMER

Channel IV:
Heritage dairy has recently gone for this channel of distribution. Those
channel consists of stockiest who are equivalent to the dealer. Designing of channel is
not a day to day task in channel management. It is the administration of the dealer
network that constitutes and every day task in channel HERITAGE DAIRY
management . These stockiest were invited by the organization through, the
newspaper ads.
At present Heritage dairy is having four stockiest among various parts of
Vizianagaram. The stockiest of Heritage dairy are:
STOCKIST NAME

AREA

Akshay enterprises

Kota junction

A.S.Naidu

P.B. road

Somaraj milk parlor

Parvathipuram

Sathish

Vuda colony

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37

HERITAGE DAIRY

STOCKISTS

RETAILER

CONSUMER

PROMOTIONAL ACTIVITIES:
With the development of the technology and heavy competition alone with production
organizations are adopting the promotional activities. They just can not avoid this.
This is the newly coming product in the market of Vizianagaram. So, in order to
acieve the marker share among no.of competitors it has taken the following
activities.It has adopted promotional mix and is spending sizeable amounts on them.
The market share of Heritage dairy is very low when compared to competitors.
In order to increase the market share of Heritage dairy has to spend a
lot on the promotional activities. Since promotion mix is the only media through
which the customers can be made aware of the various milk products, which are
prepared in the dairy. Many of the customers do not know products other than milk
produced by Heritage dairy.

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PROMOTIONAL ACTIVITIES ADOPTED BY HERITAGE DAIRY:


Heritage dairy has adopted promotional mix to promote its products. It is advertising
its products both through print media and audio/ visual media.
Section of media of advertising depends upon the product type, range of the media,
depending upon the category on which it being concentrated. There Heritage dairy
has also considered all these factors while approaching for promotional activities.

Heritage dairy products are consumers oriented products, which are used by every
class of people. Therefore it has to concentrate on media, which covers all the classes
of people. For the purpose of sales promotion Heritage dairy allots some amounts of
money as any other organization do.

VARIOUS MEDIA OF ADVERTISING OF HERITAGE DAIRY:


AUDIO/ VISUAL MEDIA:
This audio/visual media includes cinema TV, radio, And out door. Heritage dairy is
using all these media effectively. It is promoting its products in all these media.

HOARDINGS:
Dairy had its hoardings at every important place where there is much of scope for the
movement of people in the city. The hoarding sites are studied with much care
because there should be maximum reach and the display of the hoarding should be
prominent. These displays usually consist of the product.

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PAINTING:
Heritage dairy is painting its products ads on the buses and auto rickshaws &
on its own vehicles. This is one of the important modes of across these ads even
unintentionally.
If these ads are impressive then they will definitely drags the attention of the people.
Since the vehicles moves to of this advertising is, it is cost effective since these autos
charge very nominal amounts for these advertisements.

SHOP IDENTIFIERS:
The dairy is painting on the shops of the booth agents its logo and captain not free of
cost. These painting are done in such a manner that they should attract the attention of
the people nearby. These paintings are done in colors green and red. This is catchy.
The booth number and agents details are also painted on the walls of the booth along
with the contact number of dairy inviting complaints if any.

ADVERTISING THROUGH CABLE NETWORK:


The audio/ visual media will have a very good impact on the viewers of the
advertisements. Heritage dairy is also using this media effectively. The cable network
is reaching wide area of he people hence dairy has booked three-20 seconds spots
during the prime time for its advertisements which mainly concentrates on the brand
loyalty and positive aspects of the dairy milk and its attributes. The ads are mainly
shown in the local cable networks.
CINEMA:
Heritage dairy is also promoting its product through the film media. In
Vizianagaram. People are much entertainment oriented, they spend their leisure time
by watching movies in the theatres. Heritage dairy has been in slide shows at around
20 most widely accepted theatres.

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PRINT MEDIA:
Heritage dairy is using print media also. Heritage dairy is giving its ads in
newspapers regularly. Pamphlets on importance of using Heritage dairy milk and
precautions to be taken in summer season are being distributed. They also contain
The disadvantages of not maintaining hygiene property by the outside milk vendors.
According to the market intelligence reports they quality of the milk supplied by
some of the private people do not confirm to the PFA standards.
SALES PROMOTION:
Sales promotion is the key ingredient in marketing campaigns. it can be defined as
sales promotion consists of a diverse collection of incentive tools, mostly short term,
designed to stimulate quicker or purchase of particular products / services by
consumers or the trade.
Heritage dairy has adopted the sales promotion activities ,which includes, prize
rewards, discounts,etc.,
Ice boxes supplied to booths at 50%subsidy. Deep refrigerators are supplied
free of cost to important localities agent .
. Heritage dairy is also maintaining good public relations. There is regular
check up at the milk booths to know whether the public is facing any problem with
the booth agents.

PRICING:
Pricing of any product should be done with great care. There are various methods
in pricing and every organization will follow a definite pricing method. Pricing of
product will depend upon the external environment, competitors pricing method,etc.
Heritage dairy also have a particular pricing method. The committee of members
consisting of the following people determines price of any new product. They are
managing director, marketing manager and finance manager.
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The pricing varies from place to place. For example about 80% of the total ghee is
exported to out of state and remaining 20% is sold within the state.
As there is more demand for ghee in northern region pricing of the product is also
made by considering the local market of the product, no of competitors etc.
Heritage dairy can be considered as a service sector rather than profit oriented sector.
The system followed by it in pricing a product is
COST BASED PRICING:
In cost based pricing the dairy follow absorption cost pricing . this absorption cost
pricing is also known as full cost pricing. In this pricing technique the unit cost of
product is estimated at the normal level of production and sales.

The method uses standards costing techniques and works out the variable and fixed
costs involved in producing, selling and administering the product.The prices being
charged on each and every product line context of the subject. Therefore it is evident
that the organization is more service oriented rather then the profit oriented when
compared with the amount which should be actually given to the producers of milk.
Depending upon the quality of milk they produce the organization pays them.
100 members from the various categories were contacted during the survey to get
feed back on the sales promotional activities of the Heritage dairy. The maximum
members are the pan shop owners.

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Type of respondents

No of respondents

Dealers
Sweet shops
House holders
Backery
Pan shops

12
05
10
15
45

Tea shops

08

Juice shops

05

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43

1.

Opinion regarding milk products you use.


No of

Percentage of

respondents

consumers

Curd

45

45

Butter Milk

39

39

Ice Cream

Badam Milk

13

13

S. No

Product

Interpretation:
The total survey revealed that the people how they are using milk products. Each
product having different percentages respectively. These are curd consume 45
percent, butter milk consume 37 percent, ice cream consume 3 percent & badam milk
consume 13 percent. Hence from the above it is evident that the consumption of milk
products high in the district.

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44

2.Opinion regarding products that you normally use.

Number of

Percentage of

consumers

consumers

visakha dairy

45

45

Heritage

25

25

Others

30

30

S. No

Quantity

Interpretation:
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The total revealed that the people were using different brand milk products.
In that the people using visakha dairy45%, heritage dairy 25% Others 30% .hence
from the above it is avident that the consumption of visakha dairy milk is high in the
district.

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46

3.Opinion regarding factors considered to buy milk products.

No

of

S. No
1
2

Factor
Price
Quality

respondents
20
50

Percentage
20
50

3
4

Timely Available
Pack size

20
10

20
10

Interpretation:
The total survey revealed that the people views to buy milk products.
According to consumers taste and preferences they consider different factors. these
are the price 20%,quality 50%, timely availability 20%,and pack size 10%. hence
from the above it is evident that the most successful factor is quality.

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4.Opinion regarding quality of Heritage Products.

Percentage of

S.NO.

FACTOR

No of the respondents

Good

45

45

Average

50

50

Poor

respondents

Interpretation:
The total survey revealed that the quality of heritage products are mostly average
while compare with other products in the market. The results are it has good quality
45%, average quality 50%, poor quality 5%. In overall the quality of the products are
good.
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5.Opinion regarding factors influences you to buy Heritage dairy products.

No

of

Percentage

S. No

Factor

respondents

respondents

Good Quality

30

30

Attractive Packing

25

25

Timely Available

25

25

Brand Name

20

20

of

Interpretation:
The total survey revealed that the people are influenced by above factors
to buy Heritage dairy products. These are good quality 30 %, attractive packing 25%,
timely availability 25% and brand name20%. Hence from the above it is clear that
good quality and timely availability these two factors are influencing on consumers to
buy Heritage dairy products.

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49

6. Opinion regarding whether the supply meet demand or not.

S. No

Factor

No of respondents

Percentage

Yes

45

45

No

55

55

Interpretation:
The total survey revealed that the supply of these products are not good even
there is lot of demand for the products the supply chain in vizianagarm isnt working
properly. So they have to increase the supply in order to meet demand of the product.

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50

7.Opinion regarding risk involved in selling these products.

s.no

Factor

Based

Number of

on

respondents

Percentage
Respondents

10

10

of

time
2

Rarely

20

20

No risk

70

70

Interpretation:
The total survey revealed that there is no risk involved in selling these
goods. Based on time like in winter there is less sale when compare to the summer.
No risk is 70%, rarely risk that is in summer it gets damage are 20% and based on
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time are 10%. Hence from the above it is clear that there is no risk involved in buying
these products.

8.Opinion regarding the following sales promotions.

Interpretation:
The total survey revealed that there should be take the following measures
to

No.of

Percentage

of

S. No

Opinion

respondents

Respondents

Increase advertising

30

30

Promote sales persons

25

25

3
Increase commission
45
45
increase sales in the market. The increase in advertising is 30% , recruite sales
persons is 25% and increase the commission is 45% .
Hence it is clear that by increasing the commission we can easily increase
the sales of the product in the market.
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52

9. Opinion regarding leakages in these heritage products.


No

of

Percentage

S. No

Opinion

respondents

Respondents

Yes

No

97

97

Rarely

of

Interpretation:
The total survey revealed that the following opinions about leakage problems
in heritage products. 97% told that there is no leakage, only 3% told that rarely
leakage due to transportation. Hence from the above it is clear that there is no leakage
in heritage dairy products.

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53

10.Opinion regarding service of heritage milk products in market.

No.of

Percentage

S. No

Opinion

respondents

Respondents

Good

40

40

Average

55

55

Not good

of

Interpretation:
The total survey revealed that the service of heritage products is average when
compare to the rivals. 45% of the respondents told that the service is good,55% of
respondents told that the service is average and 5% told that the service is not good.
Hence from the above it is evident that the service of heritage products is
good in the market.

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54

11. Opinion regarding whether you satisfy with given commission or not?

No.

Of

No.of

Percentage

of

S. No

respondents

respondents

respondents

Satisfied

40

40

Not satisfied

60

60

Interpretation:
The total survey revealed that they are not satisfied with the commission
given by the heritage dairy. 40% are satisfied with commission and 60% are not
satisfied with commission.
Hence from the above it is clear that the respondents are not satisfied
with commission.

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55

12. Opinion regarding the sources you are aware of heritage products.

No.of

Percentage

Of

S. No

Factors

respondents

Respodents

News papers

30

30

Television

25

25

3
4

Sign boards
Others

30
15

30
15

Interpretation:
The total survey revealed that the all the customers aware about the heritage
products in the market. Most of them are aware by news papers and sign boards both
of 30% , 25% are aware by television, 15% are by other advertisements.
Hence from the above it is clear that the respondents are aware of heritage and we
have to increase the advertise.

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56

13. Opinion regarding quantity of milk that you purchase every day.

No.of

Percentage of

S. No

Quantity

respondents

Respondents

2lt & above

25

25

5lt & above

40

40

8lt & above

20

20

10lt & above

15

15

Interpretation:
The total survey revealed that the most of the respondents are willing to
buy 5lt & above milk and others are willing to buy according to their capacity of
selling the outlets.

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57

14. Opinion regarding whether you need any changes for the products.

S. No
1
2
3
4
5

Changes

No.of

needed
In delivery
Quality
Quantity
Price
Others

respondents
30
23
20
18
09

Percentage
30
23
20
18
9

Interpretation:
The total survey revealed that there should be change in the delivery of the
products.30% of the respondents want change in delivery , 23% want change in
quality , 20% want change in quantity,18% want change in price of the product and
remaining are of other changes in the product.
Hence from the above it is clear that there should be change in delivery
of the products.

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58

15. Opinion regarding whether you recommend these heritage products top your
friends or not.

S.NO.

Opinion

No.of respondents

Percentage

of

respondents
1

Yes

60

60

No

40

40

Interpretation:
The total survey revealed that the 60% of the respondents recommend the
product to their friends and 40% of the respondents dont recommend the product to
their friends.
Hence from the above it is evident that most of the people recommend heritage
dairy products to their friends.

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59

16. Opinion regarding the price of the product.

S. No

Opinion

No.

Of

Percentage

respondents

Respondents

High

30

30

Reasonable

40

40

Low

05

None

25

25

of

Interpretation:
The total survey revealed that the price of the heritage products is reasonable by
40%, 30% are told that it is high.
Hence from the above it is evident that most of the respondents are satisfied with
the price of the heritage products.

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FINDINGS
1.

Market share of the organization is less especially in vizianagaram market. It

has to increase the market share.


2.

Heritage dairy is having good brand loyalty.

3.

When compared with the competitors dairy is having more varieties of milk

products.
4.

Milk is provided to the booth agents on time. The services of the dairy are

satisfactory regarding the distribution channel.


5.

Market share is divided into parts by the existing and newly entering

competitors.
6.

Advertisements of the organization are not the expected impact on the

customers. Advertisement awareness is very less.


7.

Less amount of commission is paid to the agents.

8.

It could not make people aware of the different products produced by it the

different products produced by it.


9.

Heritage dairy can improve its market share by making people aware of all the

products beings produced by it.


10.

Heritage dairy is producing good number of products when compared to the

competitors. This is an added advantage to the organization.


11.

Since milk producers are getting many benefits from the organization they

will by loyal to the organization.


12.

By improving the advertising strategy the organization can reach all sorts or

people in the city and every place wherever its products are sold.
13.

The commission paid to the booth agents is less when compared with the

competitors. This may lead to shifting of the agents to the competitors.

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SUGGESTIONS

Brand loyalty in the customers should be increased to prevent them from


shifting to the competitors. This can be achieved by satisfying the customer
mentally through heritage dairy products laying greater emphasis on physical
benefits of the products.

The product mix of heritage dairy is not known to many of the customers.
Therefore customers should be made aware of the heritage dairy products.

Advertising is not having expected impact on the customers. Advertising


pattern should be changed. Since the company is concerned with milk and is
used by women for ever purpose of the house, women should make aware of
the products and their usage benefits.

Heritage dairy should conduct cooking competitions to women by using milk


products dairy. This is very effective way of advertising the companys own
product in the market.

Advertisements should be designed in such a way that they should have


unique colours, and shape when compared to the surrounding advertisements.
This will definitely eye catchy and will retain in the minds of the viewers for
longer time.

Announcing innovative schemes will motive the customers.

Heritage dairy should be very careful in deciding the media of advertising.


The hoardings of the advertisements should have a positive impact on the
customers brain
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Customers should be provided with pamphlets of Heritage dairy containing


information regarding the various products of Heritage dairy, their price and
availability. This can done through the booth agents. Booth agents can supply
then to the customers along with the milk packet.

They have to provide the mobile vans in morning times and other strategies
are timely door deliver of the product.

They have to provide a minimum one parlor to the two or three streets.

They have to provide a good supply of the products when compare with the
competitors. Whenever their supply is down we have to fulfill the total
demand of both competitors and ours.

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SUMMARY

Inspire of all the above inadequacies, which are highlighted in the suggestions the
heritage dairy has a good brand image and brand loyalty among the customers. All the
employees are target-oriented in their respective fields. They created a congenial
working environment and working with co-ordination to achieve the ultimate targets
of the heritage dairy.

The organization should motivate its commission agent to the utmost possible extent
to it. It has to develop its promotional activities. New methods of advertising i.e.
using the media of advertising more efficiently and innovatively should be done.
Customers should be made aware of the product mix of heritage dairy and other
products, which they are selling.

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CONCLUSION:
The study concludes that the marketing techniques in HERITAGE FOODS (INDIA)
Ltd are following new techniques but had to change some of them which are not so
effective. The sales personnel should change the pattern of marketing procedures to
promote the sales of the milk products in order to raise the market share in
vizianagaram.
Due to the good will of the Visakha dairy products in vizianagaram market the sales
of the Heritage products are less. In order to raise the sales the management has to
concentrate on the market and grab the loyal customers towards their products.

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BIBLIOGRAPHY:

Marketing Management

Philip Kotler

Services marketing

K.Rama mohanarao

Marketing Management

Ramaswamy &Namakumari

Advertising Management

P.K. Agarwal

A brief note on VCD

Indian consumer

Subash Mehata

Journals

Business World.

Internal Records of the dairy

Information gathered through interest web sites are:

www.discvermilk.com

www.heritagefoods.co.in

www.google.com

www.milk.com

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QUESTIONNAIRE
1). Which milk products are you using ?
1) Curd 2) badam milk 3) butter milk

4) ice cream

2) which company products do you prefer in general?


1) Visakha dairy 2) Heritage 3) Others
3). which factor do you consider to buy milk product?
1) Price

2) Quality 3) Timely Available 4) Pack size

4) How is the quality of Heritage Products?


1) good

2)average

3)poor

5) Which factor influences you to buy Heritage dairy products?


1)Good Quality 2)Attractive Packing
3)Timely Available 4)Brand Name

6) Does the supply meet demand?


1) Yes

2) no

7) Is there any risk involved in selling these products?


1) Based on time

2) Rarely

3) No risk

8) Do you want any other benefits to increase sales like the following benefits?

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1)

Increase advertising 2)Promote sales persons

3)Increase commission

9) Is there any leakages in these heritage products?


1) Yes

2) no

3) rarely

10) How is the service of heritage milk products in market?

1) Good

2) average

3) not good

11) Have you satisfied with the commission given by the Heritage dairy?
1) Satisfied

2) not satisfied

12) What are the sources you are aware of Heritage products?
1) News paper

2) Television

3) Sign boards

4) Others

13) How much quantity of milk that you purchase every day?

1)2lt & above 2) 5lt & above

3) 8lt & above

4) 10lt & above

14) Do you need any changes for the products?

1) In delivery

2) Quality 3) Quantity

4) Price 5) Others

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15) Would you recommend these heritage dairy products to a friend?


1) Yes

2) no

16) What is your opinion about the price of the product?

1) High

2) Reasonable

3) Low

4) None

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ANDHRA UNIVERSITY

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